This Chip-Testing Company Has Generated Better One-Year Returns Than Intel, AMD, Nvidia And Teradyne - Ae

The iShares Semiconductor ETF (NASDAQ:SOXX) has advanced about 34% over the past year, outperforming the Nasdaq Composite Index, which clocked in gains of about 23% for the same period.

Semiconductor companies were among the beneficiaries of the COVID-19 pandemic. The work-from-home and study-from-home trends necessitated computers, accessories, gadgets and phones, which are powered by chips.
The semiconductor shortage that ensued also worked in the industry's favor.

Meet The Chip Industry's Outperformer: Aehr Test Systems (NASDAQ:AEHR), which was founded in May 1977, is a supplier of semiconductor test and reliability qualification equipment. Its solutions are designed to reduce the cost of testing, to perform screening and stress testing and burn-in or cycling of homogeneous and heterogenous logic and memory semiconductor integrated circuits, sensors, power and optical devices.

Strong Fundamentals And Order Flow Support Stock: After trading at sub-$2 levels for much of the latter half of 2020, the stock broke above the level in early December. It traded mostly between $2 and $3 until mid-July 2021 before taking off, catalyzed by a strong quarterly result and a $10.8-million contract award.

In late August, the company announced the receipt of a $3 million order to support the production, testing and burn-in of silicon carbide power semiconductors for EVs. Shortly after, it announced a first-time order from China for its FOX singulated die test and burn-in system for silicon photonics production.

In early September, the company announced a $19.4 million order from a major automotive semiconductor supplier, which it identified as a Fortune 500 company.

Aehr Vs. Industry Titans: Over the past year, Aehr shares are up about 1,330%. In comparison, Intel Corporation (NASDAQ:INTC) shares are down 0.4%.

Advanced Micro Devices, Inc. (NASDAQ:AMD) and NVIDIA Corporation (NASDAQ:NVDA) have gained about 30% and 47%, respectively, in the same period. Teradyne, Inc. (NASDAQ:TER), which manufactures semiconductor testing equipment, is up about 26% over the past year.

Aehr shares closed at $21.15 on Friday up 2.22%.

Photo by Jeremy Bezanger on Unsplash

AEHRAehr Test Systems

$72.30-0.41%

Overview

AMDAdvanced Micro Devices Inc

SOXXiShares PHLX SOX Semiconductor Sector Index Fund